Coinbase has officially launched Coinbase Custody (a custody solution for institutional investors). The current crown jewel of the crypto space is a reliable custody solution for the big players, and Coinbase has essentially just become first to market.
Last week, Coinbase Custody accepted its first deposit. Today, we’re proud to announce that we’re officially open for business. Over the coming weeks, we’ll continue on-boarding a set of world-class clients that includes leading crypto hedge funds, exchanges and ICO teams.
For those not following crypto news, a custody solution is probably the number one thing everyone was looking for. It was generally accepted that one of things holding back a bull run was a lack of a custody solution (because without one it discourages big players from spot buying crypto and encourages instead settling in dollars). Now that a custody solution is in place, big players actually have a reason to accumulate crypto for long positions rather than just bet on it via futures contracts (which settle in dollars).
Right now, in terms of regions, Coinbase Custody only supports the U.S. and Europe (with plans to also enter the Asian markets).
In terms of assets, Coinbase Custody only supports BTC, ETH, LTC and BCH. It is logical that ETC will follow. However, they state they will be adding more assets in the future (logically as Coinbase adds more assets).
This is one small step for crypto kind, but also a giant leap. Check out the rally that occurred in the wake of this event to get a sense of its importance.